Fantom (FTM) Price Climbs 90% After Sonic Testnet Rollout — $1 Target Within Reach
Will Fantom Continue Increasing Toward $1? | Credit: Hameem Sarwar
Key Takeaways
- Fantom (FTM) has reclaimed a long-term resistance level and is increasing toward $1.
- The price has increased nearly 90% since the Sonic testnet went live on Sept. 6.
- Can FTM clear its final resistance area and reach $1, or is the increase just a relief rally?
The Fantom (FTM) price has increased since August, but the upward movement accelerated in September. FTM nearly reached a new monthly high on Sept. 25 but barely failed to do so, creating a long upper wick.
Nevertheless, FTM is regaining its footing and attempting to break out from its main resistance area. Let’s analyze the FTM price action and see if this is likely.
Fantom Clears Key Level
The weekly time frame shows that Fantom created a large bullish candlestick last week, reclaiming the $0.58 horizontal area. The area previously acted as resistance in Jan. and Dec. 2023 before the price eventually broke out.
Then, FTM fell below it again in Aug. 2024 but reclaimed it after last week’s movement. Such reclaims are considered bullish developments and often lead to trend reversals.
During the reclaim, the weekly Relative Strength Index (RSI) moved above 50 while the MACD moved above 0 (black circles). These are positive signs that support the ongoing breakout. In addition to reclaiming the horizontal level, the FTM price also broke out from a descending resistance trend line.
The first minor resistance is at $0.86, but if the price begins a long-term trend reversal, it will increase well above March’s yearly high of $1.23.
Read More: Fantom Price Prediction for 2024: FTM Price Analysis
There is also positive news regarding Sonic. The Sonic testnet went live on Sept. 6 and Fantom founder Andre Cronje stated that the mainnet would be released sometime in December.
Fantom has previously announced that it will allocate 200 million FTM tokens to support the migration to the Sonic blockchain, which has a much higher throughput. When this happens, FTM will be replaced by Sonic (S).
Can Fantom Reach $1?
The daily time frame price analysis also gives a bullish outlook. It shows that FTM has broken out from an inverse head and shoulders pattern and then a parallel channel. It is currently validating the channel as support (white icon).
If this is the case, it likely means that FTM has started a five-wave increase and is currently in wave three. This is because breakouts from channels usually signal an impulsive movement that often happens in wave three.
To confirm this bullish hypothesis, the price of Fantom has to clear the 0.5-0.618 Fibonacci retracement resistance area. Then, it can increase toward its next resistance at $1, completing the five-wave upward movement.
Conversely, falling back into the channel’s confines will put the entire upward movement at risk, instead suggesting it could be a correction.
FTM Price Targets $1
The weekly and daily time frame readings suggest that FTM has started a bullish trend reversal. While the price needs to clear the 0.5-0.618 Fibonacci retracement resistance at $0.75 – $0.86, the most likely outlook is a breakout and increase toward $1.
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